A Hickory-based, publicly traded company that makes telecommunications cable has agreed to be taken private in a $3.9 billion buyout.
CommScope announced this morning that it agreed to be acquired by the Carlyle Group of Washington for $31.50 a share. That's about 36 percent more than the stock's closing price on Friday.
CommScope officials confirmed Monday that they were in talks with Carlyle, sending the shares surging.
“We are proud to enter into this agreement with Carlyle and believe this transaction is in the best interest of CommScope and our stockholders,” said CEO Frank Drendel, in a prepared statement this morning.
Senior management, including Drendel, will remain with the company.
CommScope has about 11,000 employees worldwide, including about 2,000 in North Carolina. No changes are plannned at the company “at this point,” said CommScope spokesman Rick Aspan, noting the deal isn't scheduled to close until the beginning of next year.
CommScope officials can seek better offers through Dec. 5, but would have to pay a $43.3 million termination fee if it pulls out of the Carlyle deal.
CommScope shares rose $1.19 to close at $31.41 Wednesday, a sign that Wall Street doesn't expect a richer offer to come along.
Stung by the recession last year, CommScope is poised to benefit as phone companies upgrade their networks to handle more high-speed traffic. CommScope makes wires and cables that are the backbone of high-speed data networks. Its facilities include a massive factory in Catawba that makes coaxial cable.
In September, CommScope was selected by MCNC, a state-funded nonprofit based in Research Triangle Park, to help with a $39.9 million project that will add about 480 miles of high-speed fiber optics in 37 counties in southeastern and western North Carolina.